Effective Tax Rate

9 Months Ended

Jun. 30, 2012

Effective Tax Rate

Effective Tax Rate

Note 15 – Effective Tax Rate

Income tax expense for the nine months ended June 30 is as follows:  

	2012			2011
Current	($	124,582	)	$	2,617,893
Deferred		1,119,902			(1,699,096	)
Total	$	995,320		$	918,797

Actual income tax expense differs from the expected tax expense (computed by applying the

federal corporate tax rate of 34% and state tax rate of 7.1% to income before income tax

expense) as follows:

	2012		2011
Expected federal tax expense	$	549,834	$	547,264
State tax expense (net of federal)		114,818		114,282
Net operating loss carryforwards		67,961		—
Other, net		262,707		257,251
Actual tax expense	$	995,320	$	918,797

The effective tax rate for the period ending June 30, 2012 was 38.1% instead of the expected rate of 41.1% due to reconciliation of a prior period tax liability offsetting the benefits of bonus depreciation. The effective tax rate for the period ending June 30, 2011 was 36.3% instead of the expected 41.1% primarily because of bonus depreciation.